Coal news and updates

‘Captive blocks should produce 500 mt by 2020’

April 20: Although it may seem a steep target, the 204 plus captive coal blocks in India should not find it difficult to contribute around 500 million tons (mt) of coal by 2020, Coal Secretary Anil Swarup said.

“Overall, these 204 blocks will have a peak rated capacity of 800-900 million tons per annum (mtpa). So my understanding is that even by a conservative estimate… if some of us do work hard, we will able to get 500 mt from that,” Swarup said during his recent interactions with the industry in Kolkata.

Of these blocks, he said, the 42 operating blocks (Schedule II blocks in the coal Ordinance) have a peak rated capacity of 90 mt, while another 32 blocks (Schedule III blocks) nearing operations have a peak capacity of 140 mt.

“To my understanding, 500 mt will come from these 200 blocks by 2020 and so we are not asking for the moon. My belief is that will happen,” he said.

He also said that he was confident about Coal India Ltd (CIL) achieving the target of 1 billion tons of production by 2020.

“I am glad to announce that the CIL board has approved a mine-wise plan of ramping up production to reach a level of 908 million tons.  People ask me, you talk of 1 billion tons, but you have plan of only 908 million tons. But it is a realistic plan so far and there is work in progress and they are identifying more mines and probably they will get more than a billion tons by 2020,” he added.

To a question, he said that the government is targeting to reach a situation where the domestic coal suppliers would be able to supply 100% of the coal requirements of power sector consumers having fuel supply agreements (FSA) and not 65% as is the case now.